What is the difference between a stale cheque and a dishonoured cheque

Stale Cheque refers to a cheque which is expired because it is held by the payee for too long. So, it cannot be honoured and is of no use to the payee. In finer terms, a stale cheque is one that is presented for payment by the payee, at the drawee bank for encashment, but not accepted by the bank, because it is presented after the reasonable period, i.

These cheques bear a date in the past, on which the cheque is written, and so the bank is not obligated to honour such cheques. Post-dated cheque as the name implies is a cheque that carries a later date. It is a cheque issued at any point in time by the drawer but contains a future date, i.

It is mainly used when you want to make payment at a later date. The encashment of a post-dated cheque before the stated date varies from country to country. In several countries, post-dated cheques can be presented for payment any time, while in some countries these cheques are not honoured until the date stated on the cheque.

Suppose a cheque is drawn on 4th April , then it will be valid up to 3 months from the date of issue, i. If the cheque is presented after a reasonable time, then it cannot be encashed, because the banks dishonour such cheques. These cheques are called stale cheques. Suppose a cheque issued on 4th April but the date mentioned on it is 19th April What is Stale Cheque?

What is Post Dated Cheque? Main Differences Between Stale Cheque and Post Dated Cheque Stale cheques are outdated cheques presented to the bank after the payment date has already passed. Post-dated cheques are dated in such a way that they can only be cashed in on a period ahead in the future. Cheques become stale after three months from the issuing date.

A post-dated cheque can be dated for any time in the future; it may be months or years from the date of issue. The only person responsible in case a cheque becomes stale is the holder of the cheque. In case of a post-dated cheque, the bank can, and only the issuer of the cheque is held responsible. Stale cheques are issued as standard cheques for providing payment for any service. Post-dated cheques are dated in that manner because the issuer might not have enough funds in their bank account at that moment.

Banks are not obligated to honour stale cheques, while in case of post-dated cheques, the bank must accept the cheque. A stale cheque is presented by the recipient for payment a considerable period after it had been issued. It is issued in a manner where one can present it for payment only after a considerable amount of time.

The date printed on the cheque is set any time in the future, regardless of how many months or years. It is a form of crossed payee cheque or account payee cheque, except it is post-dated to satisfy the duty at a future date. It is used primarily to make a deposit at a later date. Suppose a Cheque was issued on 5 February , but the date stated on that check is 25 February Such a search may be encased on or after April 25, , and not before that. These forms of cheques are called post-dated cheques.

Posted dated cheques are best when you may not have ample funds available on the day of issuance of the check, but you are confident that the funds will be available on the future date or deadline stated on the check. The validity of a post-dated cheque in India is 3 months from the date specified on the cheque. Likewise, each nation has unique laws about the issuance and authenticity of a post-dated cheque.

When an individual hands it to the bank for payment after it has expired, a cheque is considered to become stale.

The validity of the cheque is three months from the date of the issuance. When the period of validity ends, the check becomes Stale. Such cheques cannot be submitted to the bank for payment. And if they are submitted for payment, they will be dishonoured by the bank. Banks don't support these cheques due to the validity set by the Reserve Bank of India. When you write a date on a cheque that is older than the date on which it is delivered to the bank, a cheque is considered an Ante dated cheque.